China not to follow energy-intensive development model

Date Dec 06 2010 11:21:02

Committed to curbing global warming, China will not follow the old energy-intensive economic development model of developed nations, a Chinese energy expert said.

"Bearing in mind the long-term interests of both the Chinese nation and the whole human race, China will not copy the developed countries' old way of energy-intensive economic development," Liu Yanhua, a senior advisor to the Chinese delegation, told reporters during the ongoing United Nations Climate Change Conference in the Mexican resort of Cancun.

Instead, China will create a model of conserving energy and enhancing efficiency, Liu said. China's 11th Five-Year Plan (2006-2010) sets a goal to reduce energy consumption per unit of gross domestic product by about 20 percent.

In order to realize that goal, China's central and local governments have enhanced efforts in energy conservation and are making use of this opportunity to promote scientific development, he said.

"In recent years, the Chinese government's investment in fighting climate change has increased by a substantial margin with a rate of 20 percent to 30 percent," the expert said.

However, several obstacles remain, Liu said, citing the fact that China's energy consumption still depends heavily on coal and has just started to develop green and low-carbon energy as an example.

China to shift to prudent monetary policy next year

Date Dec 03 2010 14:08:15

China will shift its monetary policy stance from relatively loose to prudent next year, the Political Bureau of the Communist Party of China (CPC) Central Committee decided Friday. 

China may invest $8b for SCO development bank

Date Dec 03 2010 13:47:15

China may contribute $8 billion to establish Shanghai Cooperation Organization (SCO) Development Bank, the 21st Century Business Herald reported Thursday.

The proposed fund to establish the bank could be as large as $10 billion. China would be the main investor, and the remainder may come from other SOC members like Russia, according to the report.

The SOC is an intergovernmental organization founded in 2001 in Shanghai by the leaders of China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan. Besides Uzbekistan, all of the other countries were members of the Shanghai Five, founded in 1996. The members renamed the organization after Uzbekistan joined in 2001.

In the organizsation's 9th prime ministers' meeting, which was held in Dushanbe, Tajikistan this November, Chinese Premier Wen Jiabao proposed further financial cooperation among the members and the founding of a bank to explore new ways of common benefits.

According to report, one expert said the main purpose for establishing the development bank is to promote multilateral economic cooperation within the SCO framework. So far, the members' multilateral cooperation is only restricted to the field of transportation, but most of the economic cooperation is bilateral.

The SCO Development Bank will be established with reference to the framework of the World Bank and the International Monetary Fund. China will have more say in the bank's activities if the power is dependent on investment proportion, the report said, citing Wang Haiyun, senior consultant with China International Institute for Strategic Society.

However, the bank is still just a proposal, and officials are unclear when it will actually open. And though central Asian members have responded well to the plan, the report describes Russian officials as less than enthusiastic.

China to Increase Demand for Copper, Minmetals Says

Date Dec 02 2010 13:34:46

China, the world largest copper consumer, will continue to boost usage of the metal as the government increases spending on infrastructure, said Zhou Zhongshu, president of China Minmetals Corp.

China's 12th five-year economic plan starting in 2011 will create "sustained demand for metallic products," Zhou said at a mining conference in Santiago today. Copper is used in infrastructure in power cables and electrical wire.

Minmetals, China's biggest metals trader, will talk with authorities and companies in Santiago today and tomorrow to assess industry investments, Zhou told reporters today. He declined to give any further details on the discussions.

Chile and China will hold talks on investments at a government level, Chile's Mining Minister Laurence Golborne told reporters today. Chile is seeking to encourage Chinese companies to invest more than the $85 million they have spent in Chile to date, he said.

China to levy tax on individuals' restricted-share transfers

Date Dec 01 2010 12:47:45

BEIJING - China's Ministry of Finance (MOF) said Tuesday nine types of individual transfer of listed companies' restricted shares will be subject to income tax.

The announcement came in the Supplementary Circular of Income Taxation Concerning Issues on Individual Transfers of Limited Shares of Listed Companies jointly released by the MOF, the State Administration of Taxation (SAT) and the China Securities Regulatory Commission (CSRC).

According to a similar circular issued at the end of 2009 by the same three government organs, from Jan 1, 2010, 20 percent of personal earnings obtained from restricted shares transactions are paid in tax.

The supplementary circular aims to further tighten controls and strengthen the country's taxation administration.

It makes explicit that individual transfers of restricted shares or transactions that are essentially the same in nature must pay tax on the obtained cash, material objects and other forms of economic benefits.

It said owners of restricted shares that have changed hands several times before a restriction lift shall pay tax for each transfer of earnings.